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Tablets/phones are Nintendo's no.1 enemy at this stage I think.

It's killing their ability to get to kids and has totally destroyed all the gains they made with the Wii/DS in terms of casuals by effectively making casual gaming a free-to-play/$1 proposition.

I don't think unfortunately they really have an answer to this either. The smartphone/app industry just doesn't play by any of Nintendo's rules.

Sony/MS at least still operate basically under the same business model that Nintendo established with the Famicom/NES.